ing answer with explanation and conclusion What is the general difference between revealed and stated preference non-market valuation studies? In a nutshell, what are the advantages of the different approaches?
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- Answer asap with proper explanation In a contingent valuation survey, if interviewees give untrue values to influence a particular outcome, this is an example of: A. information bia B. Strategic bias C. Framing biasWhat problems does Coase associate with Klein’s interpretation of the acquisition of Fisher Body by General Motors?The princple-agent model xan explain non profit maximization in firms. Which of the following describves this model well? a. Managers, the agents, act irrationally or with bounded rationality. b. Shareholders, then principals act irrationally or with bounded rationality. c. There is asymmetric information between the shareholders (principals) and managers (agends) in terms of the managers' actions. d. Principles, interested in revenue maximization, force managers, their agents, to maximize revenue and growth. e. None of the above.
- Suppose a firm's project generates cash flows for ten years. The first-year profits are $1000, and it grows by 3% each year. If the interest rate is 10%, what is the present value of the project? (rounded to the nearest whole number) 7023 7920 8000 8023 Which of the following is false? Group of answer choices An auction is an example of consumer-consumer rivalry. Scarcity implies tradeoffs. The only resource that is available without limit is time. Economic profits consider implicit as well as explicit costs.Briefly discuss: price earning rastio, dividend valuation model and discounted cash flow methods. Practical problems associated with using valuation approaches.SM 3. Consider the problem of Example 12.4.2. (a) Suppose that Q=f(L) = √L. Write down Eq. (*) in this case and find an explicit expression for L* as a function of P and w. Find the partial derivatives of L* w.r.t. P and w. Then verify the signs obtained in the example. (b) Suppose the profit function is replaced by л(L) = Pf (L) – C(L, w), where C(L, w) is the "cost function". What is the first-order condition for L* to be optimal in this case? Find the partial derivatives of L* w.r.t. P and w.
- Should Halliburton be called to account if it is shown that its KBR unit used bribery to gain business in Nigeria? To what extent should a corporation and its officers be held accountable for ethically suspect activities by the managers in one of its subsidiaries, particularly given that many of those activities were initiated before the subsidiary was owned by Halliburton?B. Now suppose insurance rules are changed to permit a new insurer (B) to enter this marketplace and be allowed to exclude the high risk due to pre-existing condition exclusions while the other incumbent insurer (A) is forced to still charge a community rate (as in the ACA). Assuming loads remain at 20% in long run equilibrium, what would the premiums be in each market, (low risk, high risk)?The Federal Communications Commission (FCC) has hired you as a consultant to design an auction to sell wireless spectrum rights. The FCC indicates that its goal of using auctions to sell these spectrum rights is to generate revenue. Since most bidders are large telecommunications companies, you rationally surmise that all participants in the auction are risk neutral. Which auction type—first-price, second-price, English, or Dutch—would you recommend if all bidders value spectrum rights identically but have different estimates of the true underlying value of spectrum rights?
- The Federal Communications Commission (FCC) has hired you as a consultant to design an auction to sell wireless spectrum rights. The FCC indicates that its goal of using auctions to sell these spectrum rights is to generate revenue. Since most bidders are large telecommunications companies, you rationally surmise that all participants in the auction are risk neutral. Which auction type—first-price, second-price, English, or Dutch—would you recommend if all bidders value spectrum rights identically but have different estimates of the true underlying value of spectrum rights? Kindly give a brief one-page description as part of the assignment.“Pareto’s Principles states that there is an optimal solution that cannot be improved upon without disadvantaging at least one group”.Explain?Can you apply this principle in corporate decision-making? Give an appropriate example from the point of view of a corporation.(a) Is there an arbitrage? Suppose an investment firm sells options. (b) What is the t=0 price (premium) of a call option on stock 2 with exercise price E=12? (c) What is the t=0 price (premium) of a put option on stock 1 with exercise price E=23? Suppose a start-up company wants to go public. The firm has total costs of $100,000 at date t=1 and sales of $120,000 in state 1, $230,000 in state 2, and $140,000 in state 3. The firm wants to issue 1,000 IPO shares. (A share is endowed with a cash flow right of 0.1% of the total profits of the firm.) (d) The underwriter suggests an IPO price of $40 per share. Will this IPO be successful, i.e. will there be a positive demand for the shares?